Technical Analysis On The S&P

Above is a weekly chart of SPY(S&P) along with slow stochastics and the on balance volume indicator.

Let's first start with the weekly bearish engulfment that took place 2 weeks ago. That was the first bearish sign that stocks would move lower. During that week the trendline was also broken confirming that a change of trend is taking place from up to down.

Now we see the stochastics have crossed and are on a sell signal. Notice how On balance volume was showing bearish divergence at the highs which was another warning sign that stocks were about to head lower.

Nothing works 100% of the time but experience has taught me that if I follow signals, I'll make money in the long run and my signals are all pointing down. I am bearish on stocks.